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11. Do out-of-money real options have a positive value (out-of-money financial options can have non-zero valuation)? Explain briefly and give at least one real life

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11. Do out-of-money real options have a positive value (out-of-money financial options can have non-zero valuation)? Explain briefly and give at least one real life example to support your answer. 12. What is the value of a two-year fixed-for-floating compounding swap where the principal is $100 million and payments are made semiannually? Fixed interest is received and floating is paid. The fixed rate is 6% and it is compounded at 6.4% (both semiannually compounded). The floating rate is LIBOR plus 20 basis points and it is compounded at LIBOR plus 60 basis points. The LIBOR zero curve is flat at 7% with semiannual compounding and is used for discounting

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